Stock Market Crash Highlights: Sensex plunges 1,547 points, Nifty 50 slips below 24,900 as Budget STT hike rattles investors

Indian Equity Market Recap: The domestic equity market witnessed a turbulent session as benchmark indices closed sharply lower after a volatile day of trading triggered by Union Budget announcements. The Sensex slumped 1,546 points to close at 80,722, while the Nifty 50 declined 1.95% to finish at 24,825. Following the announcement of a steep hike in the Securities Transaction Tax (STT) on derivatives, markets saw an intensified sell-off. The Sensex crashed 2,370.36 points (2.88%) intraday, breaching the 80,000 mark to touch 79,899.42 during afternoon trade. The Nifty 50 tumbled 748.9 points (2.95%), sliding to an intraday low of 24,571.75, before staging a partial recovery later in the session. Budget Impact & Market Reaction: Markets opened on a positive note, with the Sensex jumping over 450 points in early trade, reflecting initial optimism. However, sentiment quickly deteriorated after the Budget speech, as heavy selling pressure emerged across sectors. A key trigger behind the sharp decline was the government’s move to substantially increase STT on derivatives trading, aimed at curbing excessive speculation in the futures and options (F&O) segment. In the Union Budget for FY 2026–27, Finance Minister Nirmala Sitharaman announced: “STT on options premium and exercise of options are proposed to be increased to 0.15% from the current rates of 0.10% and 0.125% respectively.” This announcement immediately dented market confidence, leading to aggressive profit booking and panic selling in derivative-heavy stocks. Opening Bell Snapshot: Nifty 50 opened at 25,333.75, up 13.10 points (0.05%) BSE Sensex opened at 82,445.97, higher by 176.19 points (0.21%) Despite the positive opening, sustained selling pressure dominated the remainder of the session, pushing indices deep into negative territory before a modest late-day recovery. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.